Global AI Software Market in Legal Industry is Grows Tremendously at a CAGR of 29.27%

Introduction

Artificial intelligence is influenced by machine learning, information science, computer vision, evolutionary computation, data mining, and multi-agent systems. The impact of AI on the legal profession is changing the knowledge and professionalism required of lawyers. Examples of AI applications in the legal industry include e-discovery, e-billing, contract review and management, and legal research.

Market Dynamics

Various Services and Solutions offered by AI Software Drive the Global Market

The natural language search capabilities of ROSS Intelligence enable lawyers to make the most of it by presenting queries and receiving reading suggestions, connections to pertinent case law, and supplemental information. The bankruptcy section at BakerHostetler chose to process 27 gigabytes of data using ROSS 100 years after the law firm's founding. ROSS quickly discovered the answers to questions by sorting through trillions of papers.

Furthermore, Casetext's CARA claims that finding earlier legal opinions enables lawyers to foresee the arguments of an opposing lawyer. Users can also spot instances where lawyers mishandled a case or flagged it as perhaps suspect. The AI examines the metadata and content, which then utilizes the information to arrange other documents. The company claims that customers may quickly determine which publications are most relevant by using the prediction model findings as a guide.

Technology Development for AI Software Solutions Creates Tremendous Opportunities

As legal operations become more automated, legal professionals, such as lawyers and paralegals, have been compelled to become more skilled in tasks like word processing, telecommunications, data presentation, and other tasks. Introducing such technological innovation will aid attorneys' efficient and quick conduct of legal research. Businesses and legal departments will also be able to focus more on advising clients and taking on difficult cases by implementing AI solutions. AI software can also lessen paperwork, store enormous amounts of data, and manage it efficiently. In addition, law technology impacts every aspect of the legal sector, from corporate procedures and law firms to courtroom operations and document handling. Today's software can sort through legal documents, streamline communications, and determine which cases call for the involvement of legal professionals.

Regional Analysis

North America is the most significant contributor to the global AI software market in legal industry and is expected to grow at a CAGR of 27.24% during the forecast period. North America is expected to account for the largest market share because advanced technologies like AI are being adopted at an increasing rate. Players who provide platforms and software for artificial intelligence to the legal sector also have a sizable presence in the region. Some of them are OpenText Corporation, IBM Corporation, Ross Intelligence Inc., Veritone Inc., and Neota Logic Inc. In addition, the proximity of innovation hubs and business incubators aids the creation of AI-based legal software. Established law firms, ALSPs (like Thomson Reuters), the Big Four, and financial institutions (like Barclays) collaborated or established their incubators to support the development of legal technology. These incubators provide space to support legal tech startups and scale-up development and provide innovative businesses with the guidance, know-how, and ongoing funding they require to be successful in the market.

Europe is expected to grow at a CAGR of 29.57% during the forecast period. Law firms worldwide are constantly compelled to consider ways to reduce costs. Another challenge is finding new ways to set them apart from their competitors. On April 21, 2021, the European Commission unveiled the Artificial Intelligence Act, the first-ever legal framework for AI. Extensive AI techniques, which also aim to promote innovation in the field, address the risks related to the various applications of AI systems. In addition, companies providing legal technology outside of the EU that cater to EU users will be subject to the AI Act. The adoption of AI-based legal software is expected to increase due to these developments. Significant investments were made in the region and startup capital for many small businesses.

Key Highlights

• The global AI software market in legal industry was valued at USD 719.5 million in 2022. It is expected to reach USD 7,252.8 million by 2031, growing at a CAGR of 29.27% during the forecast period (2023–2031).
• Based on the component, the global AI software market in legal industry is bifurcated into solutions and services. The solution segment is the highest contributor to the market and is expected to grow at a CAGR of 28.05% during the forecast period.
• Based on the deployment, the global AI software market in legal industry is bifurcated into on-premise and cloud. The cloud segment owns the highest market share and is expected to grow at a CAGR of 30.31% during the forecast period.
• Based on the application, the global AI software market in legal industry is bifurcated into legal research, contract review and management, e-billing, e-discovery, compliance, and case prediction. The e-billing segment is the highest contributor to the market and is expected to grow at a CAGR of 28.49% during the forecast period.
• Based on the end-user, the global AI software market in legal industry is bifurcated into law firms and corporate legal departments. The law firm segment owns the highest market share and is expected to grow at a CAGR of 28.66% during the forecast period.
• North America is the most significant contributor to the global AI software market in legal industry and is expected to grow at a CAGR of 27.24% during the forecast period.

Competitive Players

Competitive Players

The global AI software market’s major key players are Luminance Technologies Ltd, Ross Intelligence Inc., Kira Inc., IBM Corporation, LexisNexis Group Inc. (RELX Group Plc), Cs Disco Inc., Thomson Reuters Corporation, Veritone Inc., Casetext Inc., Neota Logic Inc., Brainspace Corporation, Smokeball Inc., Text IQ Inc., and OpenText Corporation.

Recent Developments

Market News

• In January 2023, The San Francisco-based law firm modCounsel and Luminance, the world leader in legal process automation, partnered to offer the full range of Luminance's AI-powered products to the firm's numerous high-growth clients.

 

Segmentation

Global AI Software Market in Legal Industry: Segmentation

By Components

• Solution
• Services

By Deployment

• On-Premise
• Cloud

By Applications

• Legal Research
• Contract Review and Management
• E-Billing
• E-Discovery
• Compliance
• Case Prediction

By End User

• Law Firms
• Corporate Legal Departments

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa